Fiscal policy involves discretionary changes in
A) interest rates.
B) exchange rates.
C) lump-sum taxes.
D) the rate of growth of the money supply.

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government expenditures and taxes, with lump-sum taxes being one example of a fiscal policy tool. Interest rates and exchange rates are examples of monetary policy tools, while the rate of growth of the money supply directly affects monetary policy.

Fiscal Policy Involves Discretionary Changes in